Digital transformation - Treasury Management - Virginia Government Finance Officers ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Treasury
Management
Digital transformation
Virginia Government Finance Officers’ Association
September 2021
© 2020 Wells Fargo & Company. All rights reserved.
Deposit products are offered through Wells Fargo Bank, N.A., Member FDIC. Wells Fargo Bank, N.A. is a banking affiliate of Wells Fargo & Company.
The pace of change is getting faster
Years to get to 50M users .
Twitter 2
Facebook
Contactless credit cards
Internet
Cell phone
Debit card
PC
ATM
Television
Credit card
Electricity
Telephone
Automobile
Airplane 68
0 10 20 30 40 50 60 70
Oracle and Efma, "Digital transformation," February 2016, adapted from Banking 3.0 by Brett King
There’s also an explosion of data
On average…
companies reference a company’s data
33 volume grows over
unique data sources 50%
for analysis annually
Aberdeen Group, “Angling for Insight in Today’s Data Lake,” October 2017
We’re experiencing a “digital transformation”
The integration of digital
capabilities into all areas, resulting
in fundamental changes to how
businesses operate, and how they
deliver value to customers and
employees.
The Enterprisers Project, “What is digital transformation?”, 2020
Companies of all sizes are focused on enhancing digital capabilities
2 of 3 CEOs are embedding digital transformation in
corporate strategy
The progress window for transformation before
negative financial or competitive impacts occur is
2 years
Sources: IDC FutureScape: “Worldwide Digital Transformation 2016 Predictions,” 2015
and Progress, "Digitally Transforming or in Digital Denial? A Report on the State of Digital Business,“ 2016
It’s even happening in finance
of executives believe that digital transformation
91% will fundamentally alter how finance teams
deliver services over next three to five years
The Hacket Group: “The CFO Agenda: Finance's Top 4 Strategic Priorities in 2017”
For treasury, digital transformation is no longer “if ”— but “when”
Do you have a plan?
To operate efficiently, keep
your head above water, and achieve
best-in-class, treasury needs a
digital transformation strategy
Agenda
Why What Who
does transformation are the essential are the key
strategy matter elements for an collaborators and what
effective plan resources are required
Why does transformation strategy matter
Just what is a digital transformation strategy?
Your digital transformation is a journey
01 02 03 04 05 06You’ll need to manage
three generations of
technology, New
simultaneously technology
Legacy
systems
Future
technologyEvolving expectations mean adopting new tools Must haves: • Mobile experiences • Real-time speed • Omnichannel access
At the same time, planning for the future It’s closer than you think • Artificial intelligence • Machine learning • Automation
Complexity will
increase as you
evaluate and work Specialty
vendors
with new providers
FinTech Innovators
IT ERP
companies providers
BanksA digital transformation strategy focuses the entire organization
Set milestones
Align with goals
Mitigate risk
Build clarity
Identify gaps
Prioritize investmentSeeing the road ahead also helps your people Trade worry for productivity • Stay motivated and engaged • Attract and retain talent
Companies with
digital transformation
plans are experiencing
41% Increased market share
positive impacts
32% Increased revenue
37% Improved customer engagement in
digital, web and mobile channels
37% More positive employee morale
Altimeter Group, “State of Digital Transformation Report,” 2016What are the essential elements of an effective plan
Your strategy has a specific purpose
Is Is not
• Living document • List of features or
system requirements
• Vision for finance
• Business case
• Priorities for tech initiatives
• High-level milestones • Detailed implementation plan
• Owned by IT
• Owned by treasury managementBegin with a destination in mind
Link your strategy to:
• Company priorities
• Treasury management goalsUse as a tool for making high-level decisions
01
How • Build vs. buy
• New tool vs. enhance existing
Plan
When • This year vs. longer term
• Independent schedule vs. simultaneous with other upgrades
Who • In-house vs. external resources
• Current vs. new providers
• To serve customers vs. suppliersDefine a manageable scope
01 02
Plan Tackle one area at a time
• Procure-to-pay
• Order-to-cash
Scope
• Cash management and liquidityBuild on the foundation of your legacy systems
01 02 03
• Document your work flows
• Obtain front-line input
Plan Utilize
• Attach real numbers
• Conduct usability studies
ScopeMake good data a priority
01 02 03 04
Plan Utilize
No more
Scope Clean up “garbage in, garbage out”Envision a better way to work
01 02 03 04 05
Think differently
• Break down
internal silos
Plan Utilize Envision
• Take an outside-in
perspective
• Consider user
Scope Clean up experience
• Assess information
needsPrioritize and define your path
Target reminder: Match your level of investment and pace of change to your goals
01 02 03 04 05 06
Plan Utilize Envision
Scope Clean up Prioritize
• Evaluate your options
• Involve IT and outside resourcesHow will you keep up with what’s next?
You hit your target but your journey continues
Move beyond the hype
• Shift your culture
• Make learning a weekly routine
• Involve your teamShare your plan often—but update it sparingly
Conduct monthly Revise if you have: Don’t update just because
progress updates a new tool emerges, stay
• Organic growth
on target
• Merger or expansion
• New regulations
• Major change to
treasury’s roleKey collaborators and resources
Invite the right team to the table Treasury leadership • IT • Treasury frontline staff • Key business lines • Bank
Finding common ground with IT
Tips to build strong relationships: • Make it two-sided
• Select a tech mentor
• Swap departmental meetings
• Attend conferences togetherWhen you need help, seek out these IT professionals
Business analytics
Technical project Systems
or reporting
manager administrator
manager
Look for strategic, enterprise-wide roles and previous experience working
with line of business teamsInvolve your bank Ways your bank can be a resource: • Host a lunch-and-learn session • Share case studies and best practices • Conduct a business process review
How can digital tools transform your journey?
01 02 03 04 05 06
Plan Utilize Envision
Scope Clean up PrioritizeTreasury Management Thank you
You can also read
